Since 2003 we’ve dabbled with different pricing models; Hourly, Value Based, Commission Share, Ownership. Out of all of these, Commission Share has proven time and again (4+ times to date) to be the most profitable for both our clients, and ourselves.
Here is how it works.
Typically we still ask for $1,000 to $1,500 up front for the initial services. We give you some time (roughly 60 days) to see the value and improvements in SEO. By this time, we expect you’ll want to be super aggressive with your SEO results. We will also have a better idea of how we work with each other.
We will begin discussions with how much SEO makes sense for your website (from $300 to $1,000 per month or more). Usually we will take the lower of these numbers and look at your previous years sales (if any) and determine a good percentage of sales to ask for as share of commissions.
Say we start at $300 per month. We did this with a client a little over two years ago and they have increase business more than 500%, which pays us out $1,500 per month, while they have seen a 500% increase in sales – and they have complete faith that we share a common best interest – INCREASE SALES!
This is a win-win all around. At the beginning of the SEO efforts they are paying a lower (often) $300 per month. Yet, they are getting a super-aggressive campaign without the higher early costs. And, if sales do decrease at some point in the future (seasonally, virus hoax, etc.), then our fees would also decrease.
Not all business models work to track and share in commissions, but for those that do, it is something to seriously consider – and one we would certainly entertain.